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WEDNESDAY, MARCH 19, 2007 PHONE: (617) 748-3139
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FORMER SPRINGFIELD MAYORAL CHIEF OF STAFF PLEADS GUILTY TO CONSPIRACY AND FALSE PERSONAL INCOME TAX RETURNS

SPRINGFIELD, MA – United States Attorney Michael J. Sullivan; Eileen J. O’Connor, Assistant Attorney General, U.S. Department of Justice, Tax Division; Douglas A. Bricker, Special Agent in Charge of the U.S. Internal Revenue Service, Criminal Investigation; Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation in New England; and Peter C. Emerzian, Special Agent in Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General, announced today that ANTHONY ARDOLINO, 36, of 128 Dayton Avenue, Springfield, Massachusetts, pleaded guilty before U.S. District Judge Michael A. Ponsor to one count of Conspiracy to Defraud the United States and four counts of Filing False Personal Income Tax Returns.

ARDOLINO, the former Chief of Staff for former Springfield Mayor Michael Albano, was charged in a sixteen-count Indictment, unsealed on October 31, 2005, together with his brother, Chester Ardolino, formerly a police officer for the Springfield Police, and Matthew Campagnari, a private real estate developer and bar owner.

At today’s hearing ARDOLINO admitted that he conspired with co-defendants and others to under-report and conceal income and expenses of the bars they owned as well as filed false personal income tax returns in order to avoid paying federal taxes. As a result of their tax fraud conspiracy, the defendants collectively did not report approximately $725,000 in additional income and employee wages and failed to pay approximately $300,000 in additional federal taxes.

According to the Indictment, Campagnari owned several bars in the Springfield area. In the summer of 1997, ANTHONY ARDOLINO, Chester Ardolino, and Campagnari decided to open a bar together, which later became known as The Civic Pub, located at 1248-1252 Main Street in Springfield. ANTHONY ARDOLINO admitted that he and his co-defendants, however, decided to keep the ARDOLINOS' ownership interests hidden due to their positions with the City of Springfield. Campagnari and the ARDOLINOS owned The Civic Pub until February 2000 when they sold the bar for $150,000. Campagnari and the ARDOLINOS, however, reported the sale price as only $40,000.

Shortly after the sale of The Civic Pub, Campagnari and the ARDOLINOS decided to open another bar together, which later became known as The Pour House, located at 280 Worthington Street in Springfield. Campagnari and Chester Ardolino owned the bar publicly, but in reality shared the ownership with three other individuals, including ANTHONY ARDOLINO. ANTHONY ARDOLINO admitted that his ownership interest again remained hidden due to his position with the City of Springfield.

As part of the tax fraud, ANTHONY ARDOLINO admitted that Campagnari and the ARDOLINOS paid employees of both The Civic Pub and The Pour House in cash and distributed cash payments to themselves while failing to pay federal employment, Social Security, Medicare and income taxes due on those cash payments. ANTHONY ARDOLINO further admitted that in or about April 2001, in his official position as Mayoral Chief of Staff, he attempted to have the Springfield City Council cause $62,000 in public funds to be used to pay for the infrastructure costs of the Lemnos Lane subdivision, a private real estate development owned by Campagnari, without disclosing his past or present hidden business interests with Campagnari. Campagnari ultimately withdrew this request in May 2001, after a public outcry.

Judge Ponsor scheduled sentencing for June 18, 2007 at 2:00 p.m. ARDOLINO faces a maximum term of imprisonment of 5 years and a fine of $250,000 for the Conspiracy charge, and a maximum term of imprisonment of 3 years and a fine of $250,000 for each of the False Personal Income Tax Returns.

The charges are still pending against co-defendants Campagnari and Chester Ardolino.

This case is the result of a joint investigation by the U.S. Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development’s Office of Inspector General. The case is being prosecuted by Trial Attorneys John P. McAdams and Jorge Almonte of the U.S. Department of Justice’s Tax Division on behalf of Sullivan’s Springfield Office.